(March 25): Hong Kong Financial Secretary Paul Chan said the government was committed to keeping up a strong supply of initial public offerings (IPOs), underscoring the importance of the city’s stock market as Beijing intensifies regulatory scrutiny of some overseas listings.
“The number one priority is to ensure there will be a continuous supply of quality issuers coming to Hong Kong,” said Chan at the Bloomberg Family Office Summit in the city on Wednesday.
Hong Kong’s market for share sales is booming, bringing in bumper revenue for investment banks and fuelling a talent war for seasoned dealmakers. IPO volumes hit a four-year high in 2025, and have started this year with a bang.
But the deal flurry has attracted scrutiny from regulators. Beijing is restricting certain types of Chinese companies incorporated overseas from seeking listings in Hong Kong, according to people familiar with the matter. Hong Kong’s Securities and Futures Commission has also warned some investment banks over shoddy filing practices.
Chan struck a balance between talking up the importance of the IPO market while also emphasising the need to ensure quality issuers dominate the market. He said attracting capital wasn’t a problem, pointing to “huge” net inflows last year.
“Reputation, trust, and confidence of the market is central to everything,” he said. “So we will continue to be very careful and very prudent in terms of listing applications.”
See also: Talent fight intensifies in Hong Kong’s US$1 tril wealth hub
Hong Kong has in recent years tried to encourage more wealthy individuals and their families to anchor their investments in the city, boosting a sector that’s become an important pillar of the economy. The number of single-family offices based in the financial hub rose 25% to 3,384 between 2023 and the end of last year, according to a Deloitte survey commissioned by the government.
Chan also pointed to the advantages Hong Kong is reaping from close ties with the Middle East. The city’s de facto central bank planned a US$1 billion ($1.28 billion) joint fund with Saudi Arabia’s Public Investment Fund. Middle Eastern companies are also considering listing in Hong Kong, he said.
He said the recent turmoil means trips have been disrupted, but not cancelled. “It will be rescheduled, but the commitment will not be changed,” he said.
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